CHARLOTTE, N.C., Aug. 26, 2020 /PRNewswire/ -- LendingTree®,
the nation's leading online loan marketplace, released its findings
on a survey of more than 1,000 potential homebuyers. The survey
found that amid historically low mortgage rates and a limited
number of affordable homes for sale, buyer competition is heating
up. That pressure is forcing many potential buyers to consider
stretching their budget to get in the game.
Key findings
- 64% of homebuyers are willing to go over budget for their
perfect house.
- When homebuyers were asked what they feel is most important
when looking for a home, the top three responses were: location
(30%), a home within budget (27%) and enough space (24%).
- More than a third (37%) of buyers say finding a home within
their budget is the most stressful part of the process.
- Black and Hispanic homebuyers were about twice as likely as
white buyers to say applying for a mortgage is the most
stressful part of the homebuying process.
- About 1 in 6 buyers say they stress most about finding a
home because of the low housing inventory in their area.
- Another 16% are most stressed about trying to sell their
current home.
- More than 1 in 10 buyers said that they didn't feel their
mortgage lender was effective at explaining their available loan
options.
- 33% of homebuyers plan to stay in their next new home for at
least 15 years, while another 18% say they'd live in their next
home for less than five years.
While going over budget may be tempting, LendingTree's Chief
Economist, Tendayi Kapfidze, says
it's not a good idea: "I urge homebuyers to be very cautious
about going over budget. Many people underestimate the maintenance
costs of owning a home. If you are stretched financially and
underinvest in maintenance it can diminish the value of your
home."
To view the full report, visit:
https://www.lendingtree.com/home/mortgage/nearly-two-thirds-of-homebuyers-would-go-over-budget-for-their-dream-home/
Methodology
For this survey, LendingTree commissioned
Qualtrics, an experience management firm, to gather responses from
1,006 homebuyers, with the sample base proportioned to represent
the overall population. The survey was fielded April 24-30, 2020.
We defined generations* by using the following age ranges:
Millennials: ages 24-39
Generation X: ages 40-54
Baby boomers: ages 55-74
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student loans, insurance, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
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SOURCE LendingTree.com